Foreclosures Fall, But 10 Areas Still Hard-Hit
Daily Real Estate News | Thursday, July 28, 2011
During the first half of the year, foreclosures have dropped in more than 84 percent of U.S. metro areas, RealtyTrac reports. Is this a sign of a turnaround? Not quite, say analysts.
The drop was mostly attributed to banks taking longer to take action against home owners who have fallen behind on their mortgage payments as well as banks facing delays as they work through foreclosure documentation problems that have plagued the industry. A backlog of foreclosures in some court systems has also slowed foreclosures. In fact, the 20 metro areas with the biggest year-over-year decreases in foreclosure activity were all in states with judicial foreclosure processes — New York, Maryland, Florida, New Jersey, Connecticut, Massachusetts, and Illinois, James J. Saccacio, chief executive officer of RealtyTrac, said in a statement.
“These dramatic decreases indicate the foreclosure pipeline continues to be clogged in many local markets across the country, sometimes by a glut of already-foreclosed properties that are not selling quickly, sometimes by a mountain of improperly-filed foreclosures that are blocking the inflow of new foreclosure filings — and sometimes by both,” Saccacio notes. Earlier this month, RealtyTrac reported that the national foreclosure rate had fallen nearly 30 percent over the past year.
Where Foreclosures Are Highest
California cities continue to dominate the top 10 list of highest foreclosure rates, but Las Vegas still remains the leader. Here are the top 10 metro area with the highest rate of foreclosure filings in the country:
- Las Vegas-Paradise: 1 in every 19 households received a foreclosure filing during the first half of 2011 (5.36%), nearly six times the national average.
- Phoenix-Mesa-Scottsdale, Ariz: 1 in every 28 households (3.51%)
- Modesto, Calif.: 1 in every 30 households (3.32%)
- Stockton, Calif.: 1 in every 31 households (3.24%)
- Riverside-San Bernadino-Ontario, Calif.: 1 in every 31 households (3.21%)
- Vallejo-Fairfield, Calif.: 1 in every 32 households (3.09%)
- Reno-Sparks, Nev.: 1 in every 34 households (2.96%)
- Bakersfield, Calif.: 1 in every 36 households (2.78%)
- Merced, Calif.: 1 in every 36 households (2.78%)
- Sacramento-Arden-Arcade-Roseville, Calif.: 1 in every 39 households (2.53%)
Source: “84 Percent of U.S. Metros Post Lower Foreclosure Activity in First Half of 2011,” RealtyTrac (July 28, 2011)